WME - West Australian Metals

[chris1983]

My historical research did not indicate anything positive, too low grade and the resources were quite scattered. Probably leave this one. Needs fresh drilling results, otherwise rises are pointless.

I still like ERN and BMN more atm. But I think this one could still run. Was thinking it would run from 13 cents. Its taken awhile but it has started. Just look at DYL and their resources in Namibia..now that is scattered! Check out DYL's market cap too. Its super high..sorry to DYL holders. Atleast WME have their 17 million pound historic resource on one license If I had to choose a third uranium play in Namibia it would of been this one or EXT. Probably this when it was back around 18 cents. EXT management is useless. I'm not looking for an entry level on WME but I think they are quite good for a spec play.

 

[imajica]

nice bit of downramping there Halba, make sure you fully research a company before you make any comments - grades will be much higher across the remaining 70% of their tenements - the 18 million lb historical resource is enough on its own to warrant a higher market cap.

ie- current U explorers are valued at around $7.50 per pound of U in the ground

18 million x 7.50 = 135 million market cap

WME market cap = 52 million

even at 135 million no exploartion upside is built into the price

 

[Halba]

nice bit of downramping there Halba, make sure you fully research a company before you make any comments - grades will be much higher across the remaining 70% of their tenements - the 18 million lb historical resource is enough on its own to warrant a higher market cap.

ie- current U explorers are valued at around $7.50 per pound of U in the ground

18 million x 7.50 = 135 million market cap

WME market cap = 52 million

even at 135 million no exploartion upside is built into the price

I have researched this company extremely well. I hate to break the bad news, but its not going to meet the 18 million pound figures. Are there any drill results to back up that 18 mil pound figure? Because the figures I read on Namibian govt ministry document suggests the exploration results at the marenica license were poor. Until I see some good drill results over good widths, I would not consider investing in this company.

Re: grades will be much higher across the remaining 70% of their tenements, anything to back up that statement of yours?

I'd give WME a miss.

 

[Sean K]

nice bit of downramping there Halba, make sure you fully research a company before you make any comments - grades will be much higher across the remaining 70% of their tenements - the 18 million lb historical resource is enough on its own to warrant a higher market cap.

ie- current U explorers are valued at around $7.50 per pound of U in the ground

18 million x 7.50 = 135 million market cap

WME market cap = 52 million

even at 135 million no exploartion upside is built into the price

Actually, I think U explorers/developers are being measured on a higher market cap per lbs at the moment due to the appreciation in U spot price, but from what I've read $8 is the worst case standard right now, based on future U price averaging $40/lb.

So, by these calculations WME is looking OK.

However, I don't see how you can make this statement Imajica:

"grades will be much higher across the remaining 70% of their tenements"

Please add some justification to this.

Cheers,
kennas

 

[Sean K]

Halba,

Please refrain from giving any buy or sell recommendations. This is telling people NOT to buy:

I'd give WME a miss.

Cheers,
kennas

 

[imajica]

However, I don't see how you can make this statement Imajica:

"grades will be much higher across the remaining 70% of their tenements"

Please add some justification to this.

Cheers,
kennas

Sorry about that Kennas, forgot to disclose my source - latest research report states: (it is a prediction declared in this report)


"WME expects to be able to define higher grade zones based
on drill data sourced to-date which has reported higher grade intersections including; 9.7m at 0.098%
eU3O8, 8.1m at 0.05% eU3O8, and 3m at 0.075% eU3O8. Information has been obtained on
approximately 1000 of Gold Field’s drill holes with the remaining 1000 expected to be sourced 1Q07.
Trench sampling over 18km² (2H06) confirm broad zones of near surface uranium mineralisation.
Trench results include 60m @ 0.05% U3O8 (A1T2) and 80m @ 0.024% U3O8 (A4T2). Sampling
indicates higher grade mineralised extensions may exist to the northwest and southwest."

source: Resource Capital Research Report dated: 26th March 2007

 

[chris1983]

Guys...all in all they claim to have a 18 million pound historic resource..whether its the truth or not is yet to be seen because they need to redrill the resource.

Look at Acap resources with their supposed 30 million pound historic resource. Boy oh boy I wish I got them at 60 cents..I said I was going to but never had the funds to do so. Well I think ACAP have about that much of a historic resource from memory...I cant be bothered going through the reports to confirm but I'm sure its about that much. Anything that has a sniff of a historic resource IMO has more chance of bringing you gains than plain grassroot explorers with nothing. Thats all I'm trying to say. I dont think WME is the greatest play out there..but its not a bad one. If I could make a good profit on these what I would do is sell enough to free carry the rest just to ensure I have locked in profits and see what they could do..thats just what I would do. What ever decisions you make though is purely up to you. Good luck people.

 

[mick2006]

Good to see that the last week or so that the general market is starting to pay a bit more attention to WME. Seems that some people have different views on the stock which is fine that is what these forums are about, not everybody has to agree on which is their favourite stock.

As for WME compared against its fellow Uranium peers defining resources out of Namibia here are the following market caps as of this morning taken from commsec.

PDN- $4841 million
BMN- $274 million
ERN- $35 million
EXT- $149 million
WME- $52 million
DYL- $553 million

Each of the above companies are at varying stages of exploration and development in Namibia and I am sure that by taking a poll on which one people thought was the best value you would get votes spread over each one of them.

Just trying to highlight the fact that Namibia is certainly a world hotspot for uranium exploration and with a Government that is very helpfull in getting projects to production stage there is no reason why any of the above could become one of the next Uranium producers, obviously Paladin is already producing.

Yes WME is only in the early stages of exploration on their tennements but the above market caps certainly shows the upside potential of WME when more drilling results are released and they prove the historical data and confirm at least a 18 million pound uranium resource.

The fact that WME has started to be re-rated will continue on any positive drilling or sampling news due to the fact it is undervalued when you work out the value of the companies per pound of uranium times the historical reserves.

So WME might not be everybodies first choice Uranium explorer, but it certainly has some potential upside from these price levels, should be an exciting few months ahead with exploration results due.

Remember DYOR

 

[dj_420]

I have researched this company extremely well. I hate to break the bad news, but its not going to meet the 18 million pound figures. Are there any drill results to back up that 18 mil pound figure? Because the figures I read on Namibian govt ministry document suggests the exploration results at the marenica license were poor. Until I see some good drill results over good widths, I would not consider investing in this company.

Re: grades will be much higher across the remaining 70% of their tenements, anything to back up that statement of yours?

I'd give WME a miss.

halba you seem quite certain that a low grade uranium deposit is worthless along with any WA explorers. you state you have researched this company extremely well, perhaps you did not research the avg grades of namibia uranium deposits enough?

MIGHT i remind you that namibia uranium deposits are typically low grade. HAVE you even looked at the RIO rossing mine? do you realise it is at an avg of 300 ppm.

you also seem quite certain that historical figures are all wrong, well we might have a look at PDN langer heinrich mine, the grades historically were lower than what was eventually proven.

additionally there is a deposit called Klein Trekkopje which you might want to look at:

taken from http://ww7.investorrelations.co.uk/uramin/uploads/press/Trekkopjelicencegrant61106.pdf

SRK Consulting (U.S.) Inc (‘SRK’) is currently undertaking a Definitive Feasibility Study (‘DFS’) at
Trekkopje, which is due for completion in late 2007. In September 2006 SRK estimated Measured
and Indicated Mineral Resources totaling 61 million tonnes at an average grade of 137 ppm for 8,000
tonnes (18 million lbs) contained U308, reported using a cut-off grade of 80 ppm U308. SRK also
estimated a total Inferred Mineral Resource of 502 million tonnes at an average grade of 127 ppm for
63,100 tonnes (139 million lbs) contained U308, reported using a cut-off grade of 80 ppm U308.

so obviously here you would have overlooked the resource due to its poor grades, yet it shows that a large low grade resource can be financially viable

AND WME have higher grades

so before you completely write off a company because you "thoroughly" researched it i might suggest you look into similar style resources in the region in which the deposit is located.

 

[mick2006]

Another bonus is in the historical records of exploration by Goldfields they obtained using Alkali Leaching a 96% uranium recovery. Meaning virtually all uranium they manage to define is able to be recovered by a low cost leaching operation.
I notice that there has been some discussion on uranium recovery process and mining costs on the MTN thread would appreciate some analysis on mining cost in Namibia for WME.

 

[imajica]

a recent chart for WME

could someone with T.A. knowledge please interpret this chart

thanks in advance

 

[dj_420]

on WME i see some short term support at 20.5, 22 and 23.5 cents. these levels were previous resistance levels. fridays trade saw it break 23.5 cents on around 5 million volume, most of it in last hour or so of trade.

this was also a break of yearly high, i want to see WME close above 23.5 cents for a number of days build up new base of support.

WME could also be going through re-rating as many othe uranium stocks have run and WME has stayed relatively steady with a much smaller cap compared to market peers, so increase of late could be akin to re-rating.

 

[nizar]

on WME i see some short term support at 20.5, 22 and 23.5 cents. these levels were previous resistance levels. fridays trade saw it break 23.5 cents on around 5 million volume, most of it in last hour or so of trade.

this was also a break of yearly high, i want to see WME close above 23.5 cents for a number of days build up new base of support.

WME could also be going through re-rating as many othe uranium stocks have run and WME has stayed relatively steady with a much smaller cap compared to market peers, so increase of late could be akin to re-rating.

DJ
Agree this one looks good.
May have to buy a few at the open on monday, wide stop so i can ride it a bit.

 

[mick2006]

Was lucky enough to get in at 18c and was hoping to grab a few more before the market caught on, but now not much resistance left between 26-30c. Will take my chances and grab some more on monday at the open, with such a strong lead from the US and the large run up friday arvo may have to compete with the masses to grab whats left on offer.

 

[imajica]

strong bidding in the pre-open indiacting another bullish day for WME

WME is still ridiculously undervalued when compared to its peers on a resource value basis. (ie-minimum $9 per pound of U in the ground)

minimum 18 million lbs = 162 million market cap or around 81 cents per share

as always, DYOR

 

[gregcourageous]

Hello All. First of all, thanks for all the information everyone is posting, I'm new to trading, and the discussions on here are certainly helping me make sense of everything, slowly, but surely.

I was just wondering if anyone has any idea when the drilling results are due, I'm not sure whether i should hold on to my WME shares or look at getting something else, I like Uranium, and have been thinking about purchasing UEQ. Unfortunately i just missed out when they were down last week

 

[dj_420]

yeah i jumped off this bus after open yesterday for a quick 15%

a lot of resistance has started forming on WME with not a huge lot of support. they broke out and failed to close aboe that resistance so ill leave them be. oh well good for a quick run and small profit.

put money back into CTS, i think they have huge upside and potential producer status next year. lump them into same boat as URA.

 

[gregcourageous]

I almost did, but decided to hold at the last second, hopefully i don't regret my move. It would be nice to know when the next round of drilling results are due, could be worth gambling on them. Also, can someone please explain a little more in depth imajicas statement

WME is still ridiculously undervalued when compared to its peers on a resource value basis. (ie-minimum $9 per pound of U in the ground)

minimum 18 million lbs = 162 million market cap or around 81 cents per share

Is this based on the estimated results or already released figures?

Sorry if I'm making no sense, like I said, I know very little about trading & mining! Any help is appreciated! Cheers.

 

[imajica]

the 18 million pound Uranium resource was historically defined by the previous owner of the tenement, Goldfields in the 1970's - they didn't proceed with the project further because of depressed U prices - although it is non-JORC - it was extensive and defined a resource of approx 18 million lbs - this exploration only covered 30% of WME's overall tenement at Marenica and does not take into account the large and as yet untested paleochannnel which indicates higher grades of mineralisation and therefore the increased potential to massively upgrade Goldfields resource estimate. :jump:

 

[gregcourageous]

Sounds good to me. I got in at 0.23 so I'll hold for a while. Any idea when the the next round of results will be due?